Orange County Q3 Multifamily Market Insights: Rent Growth Gains Momentum as Demand Strengthens
Highlights:
- A recovering labor market fueled absorption of apartment units in Orange County during the third quarter, driving vacancy lower and causing rents to spike. Further gains are likely in the next few quarters.
- Vacancy fell 40 basis points during the third quarter, reaching 3.4 percent. Year over year, the rate has declined 20 basis points. The current vacancy rate is the lowest figure in the market since early 2017.
- Rents spiked for the second consecutive period. During the third quarter, asking rents rose more than 5 percent, reaching $2,186 per month. Year over year, asking rents are up 11.6 percent.
- Multifamily investment activity surged during the third quarter, and current transaction volumes have already far surpassed 2020 levels. Prices have pushed higher, with the median price reaching $364,900 per unit year to date. Cap rates have compressed, averaging 3.7 percent.
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